Friday, July 19, 2013

No Movement But Very Interesting Place To Short

This really seems toppy, yesterday was strong but then we fell back ending up 5 points in the S&P. We have really had no movement despite the strength, but we haven't gone anywhere. However, the short bond trade worked out yesterday, and I think you can sell them on any rally. Gold is seeing more strength than I thought but wait just a bit and we can see it fall as well, also then yen still looks like an interesting long so don't be discouraged by the strong downtrend, but you can sell it for sure on higher prices. Unfortunately, and it will be hard for me to admit this, but I did sell my covered write in VXX because of the larger risk than I would of liked. However, I have reinstated a wide vertical spread and hopefully that will make up, I also did the same in UVXY...so I think I am good for now. I actually sold some puts in CLF with a 68% probaility OTM so hopefully that can stay range bound to up even if the markets fall, and right now I would definitely be reducing my risk in short puts because there is so much downside risk in stocks right now. Otherwise, the stock of interest right now is TSLA considering all the volatility, there may be room for lots of different plays in TSLA, but Non directional short premium looks very attractive.

No comments:

Post a Comment